MILLI RE 2020 ANNUAL REPORT

Millî Reasürans Türk Anonim Şirketi (Currency: Turkish Lira (TL)) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2020 (Convenience Translation of Financial Statements and Related Disclosures and Footnotes Originally Issued in Turkish, See Note 2.1.1) As of December 31, 2020, the fair values (excluding VAT) and net carrying values of buildings for own use are presented below: Owner occupied land and buildings Expertise date Expertise value Net Book Value (December 31, 2020) Net Book Value (December 31, 2019) Headquarter September 2018 179.340.000 178.902.180 178.640.659 İzmir Regional Headquarter December 2020 9.510.000 9.494.289 8.081.870 Adana Regional Headquarter December 2020 2.945.000 2.942.774 1.958.237 Lefkoşe Cyprus Branch December 2020 4.350.000 4.346.962 4.215.177 Adana Office December 2020 592.500 591.972 319.486 Other December 2020 865.000 863.417 1.069.696 Total 197.602.500 197.141.594 194.285.125 Fair value measurement The fair values of self-used land and buildings were determined by market comparison technique. The fair value measurement of owner occupied land and buildings is classified as Level 2. As of December 31, 2020, and 2019, there is no mortgage on Group’s tangible assets. 7 Investment properties Additions and disposals for investment properties is given “6- Tangible Assets” note in table of current period movement of tangible assets. Investment properties are started to be presented by fair value method as of December 31, 2020 and 2019 on balance sheet and the Company’s investment properties gained TL 50.142.500 amount of value in 2020 in the context of expertise report prepared by independent professional valuation specialists authorized by Capital Markets Board. For the year ended December 31, 2020, the Group has rental income from investment properties amounting to TL 20.661.395 (December 31, 2019: TL 25.737.396). As of December 31, 2020, inflation adjusted cost and carrying amounts of the Company’s investment properties are amounting to TL 532.918.500 (December 31, 2019: TL 482.776.000) Property based value of expertise report (excluding VAT) and fair values of investment properties are as follows. Expertise reports regarding these properties are prepared by independent professional valuation specialists authorized by CMB in September 2019. There is no mortgage on Group’s investment properties. As of December 31, 2020, and 2019, details of investment properties and the fair values are as follows: December 31, 2020 Net book value December 31, 2019 Net book value Date of expertise report Value of expertise report Operating Center Rental Offices 212.300.000 196.140.000 December 2020 212.300.000 Suadiye Fitness Center 45.840.000 40.270.000 December 2020 45.840.000 Tunaman Garage 155.075.000 133.875.000 December 2020 155.075.000 Villa Office Block 45.600.000 45.600.000 December 2020 45.600.000 Çifteler Land 6.000 6.000 December 2020 6.000 Other buildings 74.097.500 66.885.000 December 2020 74.097.500 Net book value 532.918.500 482.776.000 532.918.500 Fair value measurement The fair values of investment properties were determined by market comparison technique. The fair value measurement of owner occupied land and buildings is classified as Level 2. Financial Status Risks and Assessment of the Governing Body Unconsolidated Financial Statements Together with Independent Auditors’ Report Thereon Consolidated Financial Statements Together with Independent Auditors’ Report Thereon Milli Re Annual Report 2020 219